What is one specific economic situation that a balanced budget amendment would create?
A) It would prevent deficits during peacetime. B) It would curtail inflation.
C) It would forbid budget surpluses. D) It would prevent a recession.
A
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Which of the following is true from the perspective of the New Keynesian school of thought?
a. Fluctuations in private spending does not affect aggregate demand in an economy. b. Investment spending remains relatively constant irrespective of the supply shocks. c. Fluctuations in aggregate demand are not the primary source of problem for policymakers. d. The government should limit its role to administrative functions. e. Monetary and fiscal policies often fail to restore macroeconomic equilibrium.
Prices are used in national income accounting for all of the following reasons except to
A. Compare the value of output of one period with that of another. B. Add the values of output from different sectors of the economy. C. Provide an index to measure unemployment. D. Provide an index to measure the rate of inflation.